Question
Your city built a building for $100,000 five years ago on land it already leased from a third party. They have been depreciating the building
Your city built a building for $100,000 five years ago on land it already leased from a third party. They have been depreciating the building at the rate of $4,000 per year. This year they sold the building to the land owner for $150,000. How would they record this sale in the government-wide statements? a. $130,000 ($150,000 less $20,000 depreciation ($4.000*5) as revenue b. $150,000 other financing sources c. $150,000 sales price less $80,000 adjusted basis ($100,000 original cost less accumulated depr of $20.000) as other revenue source d. $150.000 sales price less $80,000 adjusted basis ($100,000 original cost less accumulated depr of $20,000) as revenue e. $130,000 ($150,000 less $20,000 depreciation ($4,000+5) as other financing revenue $150,000 other revenue
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